*TOICTM260210/ /21/K/1**TOICTM260210/ /21/Y/1**TOICTM260210/ /21/M/1**TOICTM260210/ /21/C/1*
TIMES BUSINESS
* THE TIMES OF INDIA, MUMBAI
|
FRIDAY, FEBRUARY 26, 2010
EURO IS IN DIFFICULT SITUATION FOR FIRST TIME, BUT TAKANOBU ITO-LED HONDA LAUNCHES SPORTY
WILL COME THROUGH: GERMANY’S ANGELA MERKEL HYBRID CR-Z, VOWS TO MAINTAIN QUALITY
Swiss banks
Investors Have Gained About Rs 13 Lakh Crore Since Pranab’s Last Budget On July 6, 2009
won’t accept
Will markets tune into FM station?
‘black’ money TIMES NEWS NETWORK
Bulls On The Rampage Or Bears On Prowl?
Berne: Switzerland will no longer accept un- Mumbai: Ahead of the budget on Friday 10-9: Sensex looks
taxed money into its banks as it tries to ease morning, the BSE sensex remained ranged
pressure on its $2 trillion offshore banking for better part of Thursday and ended just 2
How They Stack Up Shine’s Back
industry from key trading partners seeking points lower at 16,256. Analysts said with the Index Feb 25, ’10 Jul 6, ’09 % change Asset Feb 25, Jul 6,
to end negative run
to boost tax rev- finance minister having little leeway to give
Sensex 16,254 14,043 16 2010 2009
enues, it said on anything to the market in the form of tax sops
Nifty 4,860 4,166 17
Re-$ 46.41 48.54
Udit Prasanna Mukherji | TNN favour of negative swings in
Thursday. or excise duty cuts, the index could move
Crude ($/Bbl) 76.58 63.01
sensex. The question that lies
As it unveiled southward on Friday. Kolkata: If nothing else, the ahead of the 20th budget since
■ BSE investors gained
Gold (Rs/10gm) 16,480 14,535
measures on how to The glimmer of hope, dealers said, was
nearly Rs 13 lakh crore
Union Budget 2010 may bring 1991 is whether the balance
foster the financial some major announcement for infrastructure back parity in sensex swings. will further tilt towards the
services industry financing, which is facing fresh hurdles as
since the last budget Sectoral Gainers
Though it’s still anybody’s negative and make it 11-9 or
on Thursday, the banks have nearly exhausted their lending
Index Feb 25, Jul 6, change
guess what Pranab Mukher- it would become even once
Swiss government limits for this sector. The first hours of trade
2010 2009 %
jee’s budget has in store, it’s again. Interestingly, the sen-
also said it wanted on the Budget day is also expected to be range-
IT 5,161 3,236 59
possible that his speech on sex movement after one
STASHED AWAY to find a solution for bound, market players said.
Auto 6,850 4,460 54
February 26 may put an end month of the budget vis-a-vis
the estimated $600- Looking back on the time since the last
Metal 16,015 10,560 52
to sensex’s southward jour- budget day has historically
700 billion of undeclared assets still hidden Budget by Pranab Mukherjee on July 6, 2009,
Small cap 7,995 5,563 44
ney over the past one month. been to the negative zone.
in the country. it was mainly heavy buying by foreign funds
Consumer
Taking 1991 as the base Only six times has the sensex
“We are not interested in untaxed mon- that propelled the sensex with investors get- Durables
3,957 2,931 35
year and 2009 the last year for moved upwards after one
ey,” finance minister Hans-Rudolf Merz told ting richer by nearly Rs 13 lakh crore. the purpose of this study, the month compared to the budg-
reporters. The government has dropped the During the same period, the BSE sensex
Sectoral Laggards
figure stands at 10-9 in favour et day close and 15 times, it
idea of seeking a pan-European deal as a way gained 16% to touch 16,256 at Thursday’s close. of negative swings in the sen- came down.
to improve EU market access for its firms The NSE nifty did marginally better, up 17%
B-Da
y
PSU 9,132 7,773 17
sex. Since the watershed The maximum rise in the
and would instead seek to resolve the issue at 4,860 now. Since the last budget, FIIs have
Capital
budget of Manmohan Singh sensex on a budget day com-
of untaxed money bilaterally with each coun- pumped in nearly $12.4 billion (over Rs 55,000
To D-Da
y
Goods
13,166 12,100 9
in 1991, 19 full budgets have pared to one month back was
try, he said. crore) into the stock market but domestic
Power 2,955 2,744 8
been placed in Parliament. It recorded in 1992 (27.9%), the
He did not specify how Switzerland could funds have taken out over Rs 9,000 crore, Sebi
Oil & Gas 9,594 9,039 6
was a 9-9 deadlock till the last second budget of Manmohan
do this in practice and reiterated a general data showed.
Realty 3,193 3,185 0
one. The sensex swing was Singh. The biggest fall was in
commitment to embracing international stan- While sensex and nifty have given double- positive nine times compared 1998 (9.1%) during the NDA
dards for cooperation in tax matters that have digit returns, on the sectoral front, software
Winners All The Way Losers Pull It Down
to the figure of one month pri- regime. According to figures,
been drafted by the Organisation for Eco- and automobile stocks led the gainers with
Scrip Feb 25, 10* Jul 6, 09* % change Scrip Feb 25, 10* Jul 6, 09* % Loss
or to the budget and negative the sensex was 982 a month
nomic Cooperation and Development. the sectoral indices rising 59% and 54% re-
Tata Motors 669 283 136 RComm 155 269 43
an equal number of times. before Singh placed his first
Switzerland also fell short of offering full spectively. On the other hand, real estate
TCS 767 382 101 Bharti 276 392 29
However, the balance was budget in 1991. It closed at
transparency to its European Union partners stocks, despite strong signs of revival in de-
Hindalco 153 78 96 RInfra 959 1,131 15
tilted last year as the sensex 1,220 on the Budget day. In
as it said it would not accept the practice of mand, and oil and petro stocks, remained the
Wipro 670 371 81 HUL 235 276 15
plunged by 870 points on July 1992, the figure was 2,214 and
automatic exchange of information relevant most underperforming ones among all the
Infosys 2,612 1,760 48 DLF 289 309 6
6, 2009. So it is now 10-9 in 2,831 respectively.
for tax purposes in use in all EU states but sectors. While BSE’s real estate index has
Luxembourg and Austria. barely moved since its July 6 close, oil and gas
“Automatic exchange of information index is up just 6%. Lately, the real estate stocks have been un-
would be the end of bank secrecy, and I be- While further signs of stability in the US der strong selling pressure with a number of
lieve it would greatly damage the Swiss fi- economy helped software companies, what broking houses unsure on whether the ear-
Core industries grow 9.4% in Jan
nancial market,” Merz said. drove the major IT stocks was their resilience ly signs of revival would last. Oil and gas TIMES NEWS NETWORK finished steel and cement expand- ished steel, petroleum refining op-
Switzerland, the world's largest offshore under tough business conditions. Infosys and stocks, too, underperformed as global crude ed by 16.2% and 12.4%, respectively, erations, coal mining as well as
financial centre and home to UBS, Credit Su- TCS have both grown their profits and beat oil prices spiked and uncertainty about gov- New Delhi: Six core sectors, which in January against 3.2% and 8.3% electricity generation had grown
isse and Julius Baer, fears opening up too market estimates during two ernment’s policy on oil sec- act as a bellwether for industrial last year. Crude output also grew by a meagre 2.2% in January 2009.
much would force money out of the Alpine consecutive quarters post the
MARKET WATCH
tor reforms lingered and sub- activity, expanded 9.4% in Janu- 9.7% in the month under review In the April 2009-January 2010 pe-
nation to the benefit of rising financial cen- budget. ZIn recognition of sidies accrued late, market ary riding on the back of a rising after contracting 8.1% in January riod, the growth was 5.4% against
tres in Asia. Even India has put pressure on this, global ratings major S&P
INDICES BULLION
players said. demand for cement and steel, 2009. Petroleum refinery products 3% in the year-ago period.
the country to reveal details of cash stashed recently rewarded their re- Since July last year, a strengthening voices that say the expanded by 3.8% against a dip of But despite the growth, indus-
away there by its nationals. silience by upgrading ratings
SENSEX: 16,254 ▼ 2 GOLD/10 GM: 16,480
strong revival in the Indian time is ripe for the government to try chamber Assocham said, “For
Even though Switzerland offered on outlook on both the companies
NIFTY: 4,860 ▲ 1 SILVER/1 KG: 25,360
economy has helped the start winding down some of the
ON RECOVERY PATH
a higher growth, the government
March 13 to help foreign authorities fight tax to positive.
TOP GAINERS EXCHANGE
currency strengthen against stimulus measures. will have to adopt a calibrated ap-
evasion, cash-strapped European Union coun- The sales in two-wheeler
SANJIVANI PAR: 61
the US dollar. From 48.54 to
▲10 $: 46.11 : 62.65
The core sector growth follows 1.3% in the year-ago period. proach and continue with stimu-
€
tries cannot directly access bank data on as- and cars have also led to a LAHOTI OVERSEAS: 6 ▲1 £: 71.11 SG $: 32.81 the dollar in early July, the an impressive 16.8% industrial ex- Similarly, electricity generation lus package for at least another fis-
sets hidden in secret Swiss accounts, known strong revival in the fortunes rupee closed at 46.41 on pansion in December but India Inc rose 5.6% in the month under re- cal.’’ Reflecting a similar view, CII
as “Schwarzgeld” or black money. of the companies in these sectors, although Thursday. Following the global trend, reacted by urging the government view against 1.8% a year ago. Coal director-general Chandrajit Baner-
A damning US tax probe into help UBS commercial vehicle sales have not been able gold too has gained about 14% since then. to hold the stimulus withdrawal production, however, grew by 6%, jee also said there has “definitely
gave to Americans seeking to hide money to match the pace. The government’s partial In between, in the local market it had for at last a year to help industry only marginally lower than 6.7% been an improvement in industri-
abroad has also weakened Switzerland's in- cut in excise duty for auto companies have gone to a new peak at over Rs 18,000 (per 10 consolidate these gains. registered in January 2009. Pro- al recovery but it is not complete,
ternational status. AGENCIES also helped. grams) mark. A statement on Thursday said duction of crude, cement and fin- it will take some time’’.
Tata Motors secures
GETTING READY FOR B-DAY
TOI
£340-m loan for JLR
Reeba Zachariah | TNN
Mumbai: After several months of discussions
with the European Investment Bank (EIB) for a
loan of £340 million, Tata Motors on Thursday
said that it has finally sealed the credit line, se-
curing guarantees from private banks. The long-
term loan will be used for R&D of eco-friendly
Jaguar and Land Rover cars.
Tata Motors said that the EIB loan is the last
major element of the funding plan for JLR and
an important part of its efforts to strengthen its
consolidated balance sheet. The £340-million fa-
cility has been granted under the European Clean
Transport Facility that finances activities aimed
at lowering carbon dioxide emissions. The lenders
include State Bank of India, Bank of India, Bank
of Baroda, Credit Suisse, Standard Chartered
Bank, Deutsche Bank and JP Morgan. GIVING FINAL TOUCHES: Finance minister Pranab Mukherjee with his team on the
One of the main reasons for the delay in se- eve of Budget. Exactly behind him is finance secretary Ashok Chawla
curing the EIB loan was the lack of guarantors.
Tata Motors was hoping for the UK government
to step in since bank funding had virtually dried
up due to the global financial crisis. Tata Mo-
tors chairman Ratan Tata had argued that JLR
Wipro theft: In-house
31 Mar 04 26 Mar 07
31 Aug 04 25 Jun 07
was not looking for a bailout but needed funds 24 Sep 04 25 Sep 07
for its working capital requirements. However,
the British government’s vacillations forced
the company to look for alternate guarantors.
checks under focus
27 Dec 04 26 Dec 07
28Mar 05 25 Mar 08
27 Jun 05 25 Jun 08
26 Sep 05 25 Sep 08
t Costlier loan, P 22 26 Dec 05 26 Dec 08
TIMES NEWS NETWORK
27 Mar 06 25 Mar 09
Ranbaxy profit
2/Jun 06 25 Jun 09
Bangalore: Embezzlement by em-
25 Sep 06 25 Sep 09
ployees appears to be a common phe- 26 Dec 06 29 Dec 09
climbs to Rs 262 cr
nomenon among Indian companies.
And some say even the $4 million that
a Wipro employee is said to have em-
New Delhi: Boosted by growth in the US mar- bezzled is a relatively small figure.
ket and forex gains, Ranbaxy Laboratories on Wipro is now instituting a high-
Thursday reported a consolidated profit after level internal probe, and is said to have
tax of Rs 262 crore for the quarter ended on De- even mandated Ernst & Young to ver-
cember 31, 2009. ify the audited accounts. Experts say
The Gurgaon-based pharma company had the reason for such frauds typically
registered a loss of Rs 680 crore in the same is lax controls. GREATER SURVEILLANCE
quarter a year ago. Kashi Memani, former chairman
The company said its sales during the quar- and managing partner of E&Y India, sues of cyber laws into focus.
INVES T IN THE
ter stood at Rs 2,270 crore against Rs 1,910 crore said such frauds happen when a com- Pavan Duggal, senior Supreme Co-
HDFC MF
in the same period previous year. It reported a pany does not conduct regular inter- urt lawyer and cyber law expert, said
GOLD AWARD FOR
-,
forex gain of around Rs 300 crore in the quar- nal audits, or do not have in place a the case showed the need for corporates
BEST PERFORMANCE
HDFC
MO NTHLY INCO ME PLAN
-
LIP
I
____________
(O ed Ma gi qu yCat gayfor l year
ter under consideration. tight set of internal controls and most to proactively comply with cyber laws.
An open-ended income sdieme. MonthI income is not
“We launched two First-to-File products dur- importantly, when they decentralize “Had the company complied with all is subject to availabilityof distrIbutable surplus.
I
ICIkA Online M Rank peaiode ding , 9framam gst46schcmcs)
MUTUAL FUND
/
DnOeeoe..,..I r, oo9 ICICRRA A Mutual FunFund d Awards 2010201 0A
assured and
hdfcf l
‘nd
ing the quarter in US — Valacycloir and Ox- the power of checks and balances to the parameters of the amended IT Act, SPast performance is no guarantee of future results.
carbazepine Suspension with exclusivity and people down in the hierarchy. this could have been avoided. The of-
also took some cost cutting measures that en- “It is very important for compa- fences are under the IT Act but law wo-
Registered Office: Ramo n House, 3rd Floor, H.T. Porekh Marg, 169, Qoc kbay Reclamation, Churchgate, Mumbai 400 020. Tel.: 022-663 1 6333. Fox: 022-2282 1144.
sured better results,” Ranbaxy CEO and MD nies to change the set of people who uld only move once police receives a
AICRA MUTUAL FUND AWARDS 2010 RANKING METHODOLOGY AND DISCLAIMER: The ranking, covering the time horizon of one year is a result of an in-depth
Atul Sobti said. AGENCIES have access to accounts on a regular complaint,’’ he said.
ana lysis of critical parameters including Risk-adlusted return, Portfolio concentration characteristics Liquidity, Corpus size Average maturity and
(
edit quality. “7-Sta r Gold
Aword” indicates Rest Performing Fund amongstthe 5-Star Funds. A detailed methodology is ovai lo le atwww .mutualfundsindia.com
basis. But, one must be careful not to Wipro is far from being an excep-
. The ranks a re assigned by ICRA Limited
IICRA Online limited. The rank is neither a certificate of any statutory compliance nor any guarantee on the future performance of the ranked entity/scheme. Risk Factors:
change people either too soon or wait tion in this matter. A survey titled
All mutual funds and securities investments are subject to market risks and there can be no assurance that the Scheme’s objectives will be achieved and the
for too long. Many a time people who ‘Fraud — the enemy within’ released
NAY of the Scheme may go up or down depending upon the factors and forces affecting the securities market. Post performance of the Sponsors and their affiliates
EGON
have for long earned the company’s by accounting firm PwC finds that ac-

RELIGARE
/ AMC/ Mutual Fund and its Scheme(s) do not indicate the future performance of the Scheme of the Mutual Fund. There is no assurance or guara ntee to unit holders as to
trust of handling accounts, tend to counting frauds in India has increased the rate of dividend distribution nor that dividends will be paid regulady. Investors in the Scheme ore not being offered any guaranteed / assured returns. The NAV of the
_____ _,___ _,__

— misuse this trust,’’ Memani said. since 2007. The report said that “ac-
units issued under the Scheme may he affected, inter-olio by changes in the interest rates, trodin volumes, settlement periods transfer procedures and performance of
Several of these factors appear rel- counting frauds are most prevalent
individual securities. The NAY will inter-alia be exposed to Price! Interest Rate Risk and Credit Risk. HDFC MF Monthly Income Plan
-
Long Term Plan (an open-ended
Funny Money #20
evant in Wipro’s case. The embezzler, during challenging economic situa-
income scheme; Monthly income is not assured and is subiect to avoilabilily of distributable surplus) is only the name of the Scheme and does not in an
“First the FM balances
one Anoop Kumar Agarwal, who sub- tions”, thus linking the increase in
manner indicate either the quality of the Scheme, its future prospects and returns. Please read the Scheme Information Document and the Statement ot
sequently committed suicide last De- such frauds to the downturn in the
Additional Information before investing. Investment objective: The primary objective of the Scheme is to generate regular returns throug.h investment p marily in debt
the budget. Then
and money market instruments. The secondary objective of the scheme is to generate long term ca pitol appreciation by investing a portion of the scheme’s assets in equity
cember in Bangalore, is said to have economy. Embezzlement is one among
and equity related instruments. Asset Allocation Paitern: Equity and equity related instruments (25%) debt and money market instruments (75% . Terms of Issue:
the housewife is left
joined the company in 2006 and was several categories of accounting fraud
Applications for subscription
promoted as an assistant manager in mentioned in the report. About 19%
’
redempflon /switches would be accepted at official points of acceptance on all Business Days at NAV based prices. The MAC will calculate and
publish NAVs on all Business Days. Load Structure: Entry Load: Nat Applicable. Exit Load: In respect of each purchase
to budget the balance.”
/
switch-in ot Units, an Exit Load of 1.00% is
the finance department. Agarwal, re- of the respondents said the direct fi- payable if Units are redeemed / switched-out within 1 year from the date of allotment. No Exit Load is payable if Units are redeemed ! switched-out after 1 year from the
Ensure money always makesyou smile.
ports say, used stolen passwords to nancial impact of the exposure was
date of allotment. Statutory Details: HDFC Mutual Fund has been set up as a trust sponsored by Housing Development Finance Corporation Limited and Standard Ufe
transfer money. This also brings is- more than Rs 2.5 crore.
Investments Limited (liability restricted to their contribution of Rs. 1 lakh each to the corpus) with UDFC Trustee Company limited as the Trustee (Trustee under the Indian
Trusts Act, 1882) and with HDFC Asset Management Company Limited as the Investment Manager.
*TOICTM260210/ /21/K/1**TOICTM260210/ /21/Y/1**TOICTM260210/ /21/M/1**TOICTM260210/ /21/C/1*
TOICTM260210/1R1/21/M/1OICTM260210/1R1/21/C/1OICTM260210/1R1/21/K/1OICTM260210/1R1/21/Y/1
CMYK
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